PROSPECTUS SUPPLEMENT DATED DECEMBER 16, 1998
(TO PROSPECTUS DATED JANUARY 30, 1998)
MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
Auction Market Preferred Stock ["AMPS(R)"]
Series A
Liquidation Preference $25,000 Per Share
Number of Shares Sold: 400
Date of Original Issue: December 17, 1998
Applicable Rate for Dividend Period: 3.52%
Dividend Payment Date: December 24, 1998
After the issuance of the 400 shares of Series A AMPS, the Fund will
have 2,320 shares of Series A AMPS outstanding with an aggregate liquidation
preference of $58,000,000.
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(R) Registered trademark of Merrill Lynch & Co., Inc.
